24
—Lancaster Farming, Saturday, February 10. 1973
Price Hearing
(Continued from Page 1)
light of skyrocketing feed costs
Board chairman Harry
Kapleau listened stoically while
Huber read his statement, as did
the other board member, Nina
Gowell
Willis Daniels, a Harrisburg
attorney spearheaded the attack
on the legality of the hearing
Daniels represents a number of
clients including the Lancaster
Dairymen s Association He cited
court lulings and statutes in his
argument that the hearing to be
legal should be opened to dealers
and consumers Other lawyers
present ]omed in with Daniels
although some did voice their
oppusiton to opening the hearing
One such was Francis A Kelly,
a Wasinnlon D C attorney
lepresentmg the Farmers Union
Milk Pioducers Co-op He said
(hat under the hearing notice no
testimony other than producers’
could be heard He also stated
(hat dealers, could easily absorb
any price increase paid to
producers
Speaking informally after the
meeting Kelly claimed that
dealers were operating inef
ticiently and spending money on
illegal kickbacks and
refrigeration equipment for big
customers “If dealers stop these
practices,” he contended, “they
can afford to pay producers
more ”
After a morning filled with
legal rhetoric, the board recessed
for 15 minutes to vote on Daniels
motion to open the hearing After
the recess, chairman Kapleau
announced that the vote against
Daniels’ motion was two to one,
with Huber casting the negative
vote
After a recess for lunch.
producers and cooperative
representatives were permitted
to take the stand to present
testimony in favor of a price
increase to producers
Dr Paul E Hand, economist
for Inter-State Milk Producers
Cooperative, called fora $0 92 per
hundredweight increase m areas
1. 4 and 6 Lancaster County is in
Area 4 “It is our position that
1 5c or 69c per hundredweight of
this increase should be per
manent ” Hand said “in that it
reflects price adjustments due to
increases in production which
had accumulated prior to the
most recent ‘iharp increases in
feed < osts
‘The remaining 23c per hun
dredweight or half-a-cenl per
quart would be handled as a
temporary increase and should
be reviewed if there is a return to
a more normal feed price and
supply situation after June 30,
1973 ”
Kenneth Mummert, dairy
farmer and chairman of the
Pennsylvania Farmers’
Willis Daniels, standing, a Harrisburg attorney, objected
strongly to the milk hearing in Harrisburg this week, and
termed the hearing call “arbitrary, capricious and un
constitutional.”
Association Dairy Division,
called for an 88c increase in the
Area 4 Class I price of milk - from
$7 27 per hundredweight to $8.15
He pointed out that PFA records
show an increase of 51c has been
registered in the cost of
producing 100 pounds of milk
since 1971 alone
Jack Kooker, a Berks County
dairy farmer, urged the board to
grant an 88c price hike in Area 2
Kooker is president of the Berks
County Dairy Farmers
Association He said that dairy
farming returns have not kept
pace with the economic growth of
the rest of the nation’s industries
About his request for an 88c
increase, Kooker said, “It is
interesting to note that our costs
of production calculations were
made with two constants - rate of
return on investment at 6 per
cent and manager’s labor at $2 00
per hour with no fringe benefits ”
More producer testimony was
heard throughout the day on
Wednesday At the conclusion of
lia.nc«»ter Parminf Photo
the hearing, Kapleau said he
hopes to have a ruling within 10
days of the completion of
testimony.
Whether or not that ruling will
stand up in court is a matter that
will take many weeks to decide.
William J. Deisley, quoted
earlier, said on Friday morning
that he was sure the dealer would
take any decision made by the
board to the courts
Reading from a statement
prepared on behalf of the Lan
caster County Milk Dealers’
Association, Deisley said.
“As milk dealers we know our
producers are facing sharply
higher feed and other costs, and
they need higher prices We
realistically support this need As
milk dealers we too have ex
perienced sharply higher labor
and other costs for three years
without price relief, and we are
unable financially to grant an
increase to our dairy farmers
unless we get a price increase
“Milk which we dealers supply
to local schools is being sold at a
price set in September, 1968.
Labor costs alone to process and
deliver this milk are up 40 per
cent along with container and
Kenneth Mummert, chairman of the Pennsylvania Farmers
Association Dairy Division, was one of the witnesses
testifying for a milk price increase at the Harrisburg
hearings.
other costs Wholesale and retail
prices set by the Pennsylvania
Milk Marketing Board haven’t
been increased for 3 years, while
our costs have increased by 25
percent ”
“These are the reasons we
dealers must fight for our legal
right to be heard at a hearing ”
“The reason chairman
Kapleau is denying our right to
testify is quite simple If there is
no dealer testimony, the board
doesn’t have anything to con
sider, so they won't increase
consumer prices This will make
Governor Shapp a hero to dairy
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Economy Barb $ lB.OO
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939 - 12-11 Page Wire *40.75S
6V4 ft. Steel Post *1.60
6V2 ft. 4" Round Wood *1.65
614 ft. Pointed Wood *1.50
Corner Braces Complete *10.50
FOR PROMPT YEAR ROUND SERVICE
Robert M. Stoltzfus
215-593-5982
Frey Bros.
717-786-2146
Xancaster Farming' Photo
farmers and consumers at the
milkman’s expense.
“Let me emphasize that the
milk dealers of Lancaster as well
as other licensed milk dealers
throughout the state have no fight
with dairy farmers Our fight is
with Gov Shapp We need and
support the dairy farmers’
request for a price increase, but
we must have an increased
consumer price to make it
possible
What good will a pnqe increase
be to dairy farmers if the dealer
they ship their milk to is unable to
pay for it 9 ”